TMO Intrinsic Value

TMO

Thermo Fisher Scientific Inc. – Other Measuring and Controlling Device Manufacturing

Thermo Fisher Scientific Inc. is the world leader in serving science, with annual revenue exceeding $25 billion. Its Mission is to enable our customers to make the world healthier, cleaner and safer. Whether the customers are accelerating life sciences research, solving complex analytical challenges, improving patient diagnostics and therapies or increasing productivity in their laboratories, the company is here to support them. Its global team of more than 75,000 colleagues delivers an unrivaled combination of innovative technologies, purchasing convenience and pharmaceutical services through our industry-leading brands, including Thermo Scientific, Applied Biosystems, Invitrogen, Fisher Scientific, Unity Lab Services and Patheon.

Analysis Results

Intrinsic Value	$1,496.09
Latest Price	$556.70
Relative Value	63% undervalued

Share results:

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Cash Flow (Billions)

Analysis Parameters

New Ticker

Analysis Details

Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 15.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 15.5%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year	Future flow (billion)	Present value (billion)
2023	11.4	11.1
2024	13.2	12.4
2025	15.2	13.9
2026	17.5	15.5
2027	20.3	17.4

Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 608 billion. This corresponds to a present value of 506 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 70.3 billion. Adding in the terminal value gives a total present value of 577 billion.

There are presently 385.0 million outstanding shares, so the intrinsic value per share is 1496.09.

Financial Statements

The following data was to determine the past cash flows.

Current Assets	25,229,000,000
Current Cash	8,524,000,000
Current Liabilities	17,010,000,000
Current Debt	5,579,000,000
Non-Cash Working Capital (NCWC)	5,274,000,000
Change in NCWC	537,000,000
EBIT	8,335,000,000
Tax Provision	703,000,000
Depreciation and Amortization	3,381,000,000
Capital Expenditure	-2,243,000,000
Unlevered Free Cash Flow	9,245,351,037

Current Assets	20,113,000,000
Current Cash	4,477,000,000
Current Liabilities	13,436,000,000
Current Debt	2,537,000,000
Non-Cash Working Capital (NCWC)	4,737,000,000
Change in NCWC	781,000,000
EBIT	10,221,000,000
Tax Provision	1,109,000,000
Depreciation and Amortization	2,592,000,000
Capital Expenditure	-2,523,000,000
Unlevered Free Cash Flow	9,788,314,812

Current Assets	21,957,000,000
Current Cash	10,325,000,000
Current Liabilities	10,304,000,000
Current Debt	2,628,000,000
Non-Cash Working Capital (NCWC)	3,956,000,000
Change in NCWC	-17,000,000
EBIT	7,893,000,000
Tax Provision	850,000,000
Depreciation and Amortization	2,325,000,000
Capital Expenditure	-1,474,000,000
Unlevered Free Cash Flow	7,798,411,764

Current Assets	11,893,000,000
Current Cash	2,399,000,000
Current Liabilities	6,197,000,000
Current Debt	676,000,000
Non-Cash Working Capital (NCWC)	3,973,000,000
Change in NCWC	327,000,000
EBIT	4,181,000,000
Tax Provision	374,000,000
Depreciation and Amortization	2,277,000,000
Capital Expenditure	-926,000,000
Unlevered Free Cash Flow	5,474,800,000

Current Assets	10,625,000,000
Current Cash	2,103,000,000
Current Liabilities	6,147,000,000
Current Debt	1,271,000,000
Non-Cash Working Capital (NCWC)	3,646,000,000
Change in NCWC	473,000,000
EBIT	3,833,000,000
Tax Provision	324,000,000
Depreciation and Amortization	2,267,000,000
Capital Expenditure	-758,000,000
Unlevered Free Cash Flow	5,434,285,101

Current Assets	9,421,000,000
Current Cash	1,335,000,000
Current Liabilities	7,048,000,000
Current Debt	2,135,000,000
Non-Cash Working Capital (NCWC)	3,173,000,000
Change in NCWC	548,500,000
EBIT	3,065,000,000
Tax Provision	201,000,000
Depreciation and Amortization	2,033,000,000
Capital Expenditure	-508,000,000
Unlevered Free Cash Flow	4,884,870,934

Current Assets	7,021,000,000
Current Cash	786,200,000
Current Liabilities	4,865,800,000
Current Debt	1,255,500,000
Non-Cash Working Capital (NCWC)	2,624,500,000
Change in NCWC	429,900,000
EBIT	2,638,400,000
Tax Provision	-1,400,000
Depreciation and Amortization	1,758,000,000
Capital Expenditure	-444,400,000
Unlevered Free Cash Flow	4,381,900,000

Current Assets	5,741,200,000
Current Cash	452,100,000
Current Liabilities	4,147,300,000
Current Debt	1,052,800,000
Non-Cash Working Capital (NCWC)	2,194,600,000
Change in NCWC	144,200,000
EBIT	2,451,500,000
Tax Provision	-43,900,000
Depreciation and Amortization	1,688,200,000
Capital Expenditure	-422,900,000
Unlevered Free Cash Flow	3,861,000,000

Current Assets	6,539,800,000
Current Cash	1,352,000,000
Current Liabilities	5,349,800,000
Current Debt	2,212,400,000
Non-Cash Working Capital (NCWC)	2,050,400,000
Change in NCWC	138,500,000
EBIT	1,904,800,000
Tax Provision	191,700,000
Depreciation and Amortization	1,684,800,000
Capital Expenditure	-427,600,000
Unlevered Free Cash Flow	3,125,552,625

Current Assets	9,880,700,000
Current Cash	5,830,500,000
Current Liabilities	3,126,000,000
Current Debt	987,700,000
Non-Cash Working Capital (NCWC)	1,911,900,000
Change in NCWC	-67,400,000
EBIT	1,687,300,000
Tax Provision	40,400,000
Depreciation and Amortization	999,900,000
Capital Expenditure	-282,400,000
Unlevered Free Cash Flow	2,285,738,825

Current Assets	4,834,800,000
Current Cash	855,300,000
Current Liabilities	2,093,300,000
Current Debt	93,100,000
Non-Cash Working Capital (NCWC)	1,979,300,000
Change in NCWC	18,300,000
EBIT	1,564,200,000
Tax Provision	11,000,000
Depreciation and Amortization	983,700,000
Capital Expenditure	-315,100,000
Unlevered Free Cash Flow	2,237,545,407

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